D, E and F are partners in DEF Partnership with profit or loss sharing ratio of 6:1:3. Due to disagreement, the partners decided to liquidate their business with pre-liquidation statement of financial position presented below: Cash P 3,000,000 Liabilities P10,000,000 Noncash assets 17,000,000 D, Capital 1,000,000 E, Capital 4,000,000 F, Capital 5,000,000 The following additional notes are provided: All partners are legally declared to be personally insolvent. • All noncash assets are sold during the liquidation process. Liquidation expenses amounting to P2,000,000 were paid. E receives a total of P2,500,000 at the end of liquidation. What is the amount received by F at the end of liquidation?
D, E and F are partners in DEF Partnership with profit or loss sharing ratio of 6:1:3. Due to disagreement, the partners decided to liquidate their business with pre-liquidation statement of financial position presented below: Cash P 3,000,000 Liabilities P10,000,000 Noncash assets 17,000,000 D, Capital 1,000,000 E, Capital 4,000,000 F, Capital 5,000,000 The following additional notes are provided: All partners are legally declared to be personally insolvent. • All noncash assets are sold during the liquidation process. Liquidation expenses amounting to P2,000,000 were paid. E receives a total of P2,500,000 at the end of liquidation. What is the amount received by F at the end of liquidation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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D, E, F are partners in DEF partnership with profit or loss sharing ratio of 6:1:3
Transcribed Image Text:D, E and F are partners in DEF Partnership with profit or loss sharing
ratio of 6:1:3. Due to disagreement, the partners decided to
liquidate their business with pre-liquidation statement of financial
position presented below:
Cash
P 3,000,000
Liabilities
P10,000,000
Noncash assets 17,000,000
D, Capital
1,000,000
E, Capital
4,000,000
F, Capital
5,000,000
The following additional notes are provided:
All partners are legally declared to be personally insolvent.
All noncash assets are sold during the liquidation process.
Liquidation expenses amounting to P2,000,000 were paid.
• E receives a total of P2,500,000 at the end of liquidation.
What is the amount received by F at the end of liquidation?
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